I am a little surprised by some of the headlines in today’s
newspapers which state that the NDA Government has done a U turn on the
issue of black money stacked up in Swiss bank accounts. Nothing can be
farther from the truth.
Let me begin by saying that the NDA Government WILL NOT withhold any
information, including names of account holders who have stashed black
money abroad, from the public; but the names will be revealed after
following the due process of completing investigations and reaching
conclusions about quantum of unaccounted money. After doing so, all the
information including the names of account holders will become public
when quoted in court proceedings arising from complaints to be filed by
the Income Tax Department against tax offenders. Any premature and out
of court disclosure of the names of account holders would not only
vitiate the investigations but will enable such account holders to get
away with their offences. It will also violate India’s Double Taxation
Avoidance Agreements (DTAA) with other countries and will choke receipt
of all further information from those countries.
The NDA Government took over in the last week of May, 2014. For 3
years, the UPA Government has been refusing to appoint the SIT directed
by the Supreme Court. At the first very Cabinet Meeting, Shri Narendra
Modi Cabinet decided to appoint the SIT. The SIT has been effectively
functioning since then.
On October 15, 2014, a team of officials led by Revenue Secretary and
comprising of Chairman, CBDT has signed a Joint Statement with the
appropriate authorities in Switzerland with regard to investigation into
black money stacked in Swiss banks. The four important aspects of that
agreement are:
(i) With regard to the list available with India of
account holders in the HSBC, where Indian tax authorities have conducted
independent investigations, the Swiss would provide India with details
upon our furnishing of adequate evidence in this regard.
(ii) Whenever India has some information/ documentary
evidence, the Swiss would confirm the authenticity or otherwise of that
evidence.
(iii) This would be done in a time bound manner.
(iv) Discussion would now start on a bilateral agreement on
automatic exchange of information in the banking system. If this
bilateral arrangement is arrived at, it will be an important milestone
in detection of black money held by Indians in the Swiss banks.
Independent of the above, the Supreme Court of India in the “Black
Money Case” had directed the Government of India to furnish the names to
the petitioner which have been given by Germany to India. These names
were given to the petitioner who made them public. The Germans strongly
objected to this as a violation of the Double Tax Avoidance Agreement
(DTAA) which was entered between Government of India and Germany on 19th
June, 1995. The present NDA Government has unfortunately inherited the
legacy of that DTAA. We may have negotiated a better deal. If we
scrap the treaty, we get no further information. The covenant to the
treaty is that the names of the account holders and information received
thereunder will only be disclosed when charges are filed in court.
They obviously cannot be utilized for political propaganda or for
political mileage.
The choice before the NDA Government is clear; violate the Treaty and
get no names in future or abide by the Treaty, collect evidence, file
charges in courts and let the names become public so that the account
holders can be named and shamed. One act of adventurism of violating
the treaty and discussing the name could perhaps jeopardise future
cooperation from the reciprocating state.
All that the Government has requested the Supreme Court is to clarify
that it has not prohibited the Government of India to enter into
Treaties with countries wherein a commitment may be made by the
Government to maintain confidentiality of information received as per
international standards. If such a commitment to maintain the
confidentiality is not given we will not receive any information about
Indians hiding their money in other countries including offshore
financial centres and tax heavens. Thus the clarification sought from
the Supreme Court is only to facilitate collection of information about
illegal money stashed abroad.
Nobody has ever suggested that the names should not be made public.
They should be made public in accordance with the existing due process
of law. If that process is violated, you will never get to know the
names in future. The NDA Government stands committed to detect the
names, prosecuting the guilty and making them public. We are not going
to be pushed into an act of adventurism where we violate the treaties
and then plead that we are no longer able to get the cooperation of
reciprocating states. Such an approach may actually help the account
holders. Adventurism will be short-sighted. A mature approach will
take us to the root of the matter.

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B.A.,I.R.P.M.,P.G.Diploma in Labour Laws and Administrative Laws,PG Dip.in Cobal Language, Diploma in Office Management, Experienced in Marketing and sales.Worked in TVS,VST,ABT Maruti,Sical -H M Car Sales,Spares sales and service ,21 Plus years of Experience in sales,service,spares marketing,Last employed in ACT - Volvo - sale of Earth Moving equipments,as Manager -Slaes and Administration.,Financial Advisor at Met Life,Now Real Estate Property Devlopment activities . Interested to work in a organization which prefers to offer me a designation with Good Salary Packages at Chennai in Any Field.